The Alcar Group
March 1, 2002
The Alcar Solution
Agenda
2
•
Company Background
•
Challenges of Planning
•
The Alcar Solution
•
Software Demonstration
•
The Implementation Process
•
Training and Support
Background
The Alcar Group, Inc.
 Founded in 1979 by two Professors from Northwestern
University’s Kellogg School of Management, Al Rappaport and
Carl Noble Jr.
 Al Rappaport authored Creating Shareholder Value
 Years of Development has Resulted in a User-Friendly Tool with
Vast Reporting Capabilities and Flexibility.
 Proof of Product’s Success Evident in Customer Base of Over
2,000 Corporate clients across every Industry and Sector.
 Current Clients (e.g.,Mead/Westvaco, Deutsche Bank, SBC
Communications,Baxter, Macromedia, Humana) have helped
shape the Alcar Solution.
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The Alcar Solution
The Alcar Vision
 To improve the efficiency and integrity of the entire
planning & analysis process by providing:
-
Analytical Power & Flexibility
Built in Financial Intelligence
GAAP Integrity
Financial Transparency
Process Standardization
 Alcar achieves this by integrating Short and Long
Term Planning, Corporate Development, and Treasury
functions.
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The Alcar Solution
Agenda
5
•
Company Background
•
Challenges of Planning
•
The Alcar Solution
•
Software Demonstration
•
The Implementation Process
•
Training and Support
Challenges of Planning
Budgeting Databases lack Analytical Intelligence
DATABASES
SPREADSHEETS
Lead to
6

Data collection ≠ Analysis

‘Run times’ for full financial analysis can be extremely high.

Financial intelligence must be “built” in by implementation.

Limited flexibility for running multiple scenarios and
consolidation structures.

Poor analytical tool for business units.
Challenges of Planning
Spreadsheets Decrease Efficiency and Increase Risk
SPREADSHEETS
Lead to





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Increased risk
Decreased efficiency
Risk of flawed calculation logic in spreadsheets.
Difficult to analyze alternative scenarios.
Fragmented process with no quality control.
Lengthy audits leaving little time for analysis.
Limited consolidation flexibility
Spreadsheet Limitations
KPMG, Coopers confirmed Spreadsheets’ Faults
They concluded:
•
90-95% of detailed spreadsheet models contained at
least one significant error
•
Approximately 80% of Excel models had no formal
system for quality assurance
•
Faulty Excel models contribute to bottom line
differences in excess of 5%
SPREADSHEETS INCREASE RISK & DECREASE EFFICIENCY
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Limitations of Other
Applications
Other Applications Fragment Planning & Analysis Process
BUDGETING
9
PLANNING
TREASURY
CORPORATE
DEVELOPMENT
The Alcar Solution
Agenda
10
•
Company Background
•
Challenges of Planning
•
The Alcar Solution
•
Software Demonstration
•
The Implementation Process
•
Training and Support
The Alcar Solution
Alcar combines all Planning Activities into One Core System
Long-Term
Planning
Short-Term
Planning
ALCAR
Solution
• Mergers & Acquisitions
Corporate
Development
• Divestitures
• Joint ventures
• Deal structure & synergies
• Value impact on corporate plan
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• Earnings accretion / dilution
Treasury
The Alcar Solution
Alcar’s Consolidations are Flexible and Financially Sound
●
Analytical
Level
of Detail
Analysis
is Completely
can be performed
Customizable
throughout entire
Consolidation Structure
TOTAL REVENUE:
Consolidated
Business
Unit A
Product Revenue

Service Revenue

Other Revenue
Business
Unit B
PRODUCT REVENUE:
12

SERVICE REVENUE:

Consulting
Revenue
International

Billable Hours

Product Mix


Regional Analysis
Business Cycle
and Seasonal
Factors

Penetration Rates

Domestic Revenue

The Alcar Solution
Multi-Level Consolidations are easy to Perform and Adjust
Acquisitions can be layered anywhere within the Organization
Corporate
Acquisition
Business Unit A
Business Unit B
Division 1
Business Unit C
Business Unit D
Division 2
Plant 1
Revenue Data
Plant 2
Cost Data
Acquisition
Plant 3
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The Alcar Solution
The Alcar Solution’s Advantages Increase Efficiency
14
●
Scenario Management – Unlimited Possibilities focusing on Specific
Variables, all Self-Contained within Each Model
●
Time Period Flexibility – Changing Time Detail, Adding, Deleting, and
Moving Deal Periods are easy Changes
●
Financial Intelligence - IS, BS, and Cash Flow are all integrated, DCF
analysis and various valuation tools are built in
●
Funding Options – Prioritization and Application of various Instruments
across Funding Surpluses/Deficits and Capital Structures
●
M&A/Divestiture Analysis – Various Deal Structures, Transaction
Timing, Target Valuations, and Synergies can be layered in at any level
of the Corporate Organization.
●
Other Analytical Tools – Sensitivity Calculators, Valuation Options, Tax
NOL Calculator, Depreciation Scheduler, etc.
The Alcar Solution
Alcar Manages Planning Process & System Continuity
SBU A
Planning
Manager
Analyst
(Short-term
Tracking)
Firewall
Corporate
Planning
Manager
SBU B
Planning
Manager
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Bus.Dev.
Analyst
(M&A)
CFO
(Reports)
Analyst
(Long-term
Funding &
Covenants)
The Alcar Solution
Agenda
16
•
Company Background
•
Challenges of Planning
•
The Alcar Solution
•
Software Demonstration
•
The Implementation Process
•
Training and Support
The Alcar Solution
Agenda
17
•
Company Background
•
Challenges of Planning
•
The Alcar Solution
•
Software Demonstration
•
The Implementation Process
•
Training and Support
The Alcar Solution
Alcar is implemented by FINANCE professionals, not IT
Design
•Review
planning goals
•Determine level
of detail and
structure
•Develop value
driver maps
with key
linkages
•Define Q&A
process for
system
validation
Development
•Construct
models based
on value
driver maps
and
structure
•Develop
mapping to
existing or
required
systems
•Customize
reports
Testing
•Develop test
plan
•Load data into
system
Documentation
•Document all
Models and
Processes
- Structure
Overview
•Run system
- Maps
•Calibrate
system by
analyzing
results with
previous
models and
market data
- Key
analysis
definitions
- How to use
•Train key users
Roll-Out
•On-site
assistance
during Roll-Out
•Assistance
with any finetuning of the
models
•Assistance
with the first
round of
updates,
analysis, and
consolidation
Alcar’s customized training empowers users to make model
changes themselves quickly and easily
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The Alcar Solution
Agenda
19
•
Company Background
•
Challenges of Planning
•
The Alcar Solution
•
Software Demonstration
•
The Implementation Process
•
Training and Support
The Alcar Solution
Customized Training and Documentation Ensures Users are
Prepared to use the System Effectively


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Customized Training Programs are developed with each
client
•
Multiple courses, e.g., Beginner, Intermediate, Advanced,
easily integrate with Client’s Training Schedules
•
Case-Study Approach using Client specific examples
•
Web-Based training and Self-Study materials available
Documentation explains the ‘How To’ behind all Models
•
Each model and template is individually detail to guide users
and facilitate Alcar Support
•
Yearly and Quarterly Audits keep Documentation current
The Alcar Solution
HelpLine and On-Site Support are also available


HelpLine
•
Staffed by Financial Professionals who have your Documentation at
their fingertips
•
Available 365 days a year
•
Global Support: Alcar Offices in Chicago, Sao Paulo, & Amsterdam
On-Site Visits
Our Implementation staff is also available for On-Site support for more
personalized assistance
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The Alcar Solution
Selected Client List
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